Morning Silver Market Report

Compiled 07/27/11 6:00 AM (CT) Statistics: London Gold Fix $1,621.00 +$11.00 LME Copper Stocks 469,800 tons +700 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, silver has managed a fresh new high for the move overnight, but so far the silver market has yet to even return to the May highs. Clearly gold has managed to carve out the primary flight to quality standing in the precious metals complex, even though nearby silver prices in July alone have managed a low to high rally in excess of $7.00 an ounce. The focus on the US debt battle in the silver market should remain intense and the ebb and flow of macro economic sentiment is probably going to be given a back burner status. However, silver has generally avoided pressure off fears of slowing recently and that reaction has been generally mirrored in the copper and platinum trade. With the overnight concerns toward the Euro zone rekindled again, a vote in the House on the debt ceiling pushed back and a flurry of potentially unnerving credit rating agency stories possible in the headlines later today, the bull camp in silver has to be somewhat emboldened to start the Wednesday morning US trade. Like gold, silver might not take much direction from the US scheduled report slate today, as the focus on Capitol Hill looks to dominate the landscape again today. Comex Silver Stocks were 101.775 million ounces down 1,031,298 ounces. Silver stocks have increased 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were mixed during the overnight session, stock indices in Europe are generally weaker this morning. Early indications are that US equity markets will open slightly lower later on this morning. The US Dollar is weaker against most of the major currencies this morning. Representatives from major credit ratings agencies will testify in front of the US Congress this morning. German Import Prices during June were down 0.6%, lower than expectations. Major US economic numbers to be released this morning will include June Durable Goods at 7:30 AM, and a private survey of US mortgage applications released before the session. The Federal Reserve will release their latest Beige Book at 1:00 PM. There will also be results of the Treasury's 5-Year Note auction announced at 12:00 PM.